Previous Page Next Page Page 13 of 16 Question 13 (10 points) Reported below are the Income Statement and Balance Sheet of a company. To further explain the financial statements' numbers, the following information is available: Cash dividends were paid for $23,000 The company issued bonds for $105,000 and common stock for $60,000 $ 1,450,000 $ (935,000) $ (325,000) INCOME STATEMENT Sales revenue Cost of goods sold Other expenses Depreciation Expense $ (50,000) Selling and Administrative Expense $ (275,000) Income before taxes Income Tax Net Income $ $ $ 190,000 (57,000) 133,000 BALANCE SHEET 2018 $ $ Cash Receivables Inventory Prepaid Expenses 121,500 200,000 95,000 22,000 2017 6,000 150,000 80,000 12,500 $ $ Property, Plant & Equipment Accumulated depreciation TOTAL ASSETS $ $ $ 780,000 (230,000) 988,500 $ 660,000 $ (180,000) $ 728,500 3,000 Unearned revenue Accounts payable Income tax payable Long term bonds 21,000 14,500 440,000 350,000 160,000 988,500 $ 13,500 $ 40,000 $ 335,000 $ 290,000 $ 50,000 $ 728,500 Common stock Retained Earnings TOTAL LIAB. & SH EQUITY $ QUESTION: If the company adopts US GAAP and prepares the Statement of Cash Flows using the indirect method, what number do they report as "Cash Flow from Operating Activities"? NOTE: Do not include the $ symbol in the answer. Also, use the comma to separate the thousands. For example, a correct answer will be 45.000", not $45.000" or "45000". Use parentheses for a negative number for example, write (45.000)", not "-45.000